I think the asset market was in a serious bubble. And now I think everything is in the process of getting back to normal. There are too many unusual things happening in the world. Things we have never seen in our lives.
It also seems that people have forgotten about the value of money. Working in this market, I’m very surprised that the majority of people don’t care about these things. It’s hard to live these days, but it’s sad to think that the world has turned so cold and not interested in other people.
Over the past year, I have had fun in the crypto market, made many good friends and gained a lot of knowledge. I am very grateful for that.
When starting my community, one goal was to want people to get good results without losing money. This may be an impossible goal, but I did my best to make it happen.
People are inherently selfish, so it's enough if you're good on yourself, but I wanted to get good results in this market with everyone. However, such a goal did not seem to have been achieved. In fact, it is an impossible goal, but whenever the market fell and many people lost money, I suffered a lot.
Let’s think about it for a moment. Isn’t the reason you entered the asset market to make money?
If you are losing money, you need to know that something is going wrong. But many people don’t seem to put much effort into achieving that goal. Of course, not everyone is like that. Don’t get me wrong.
Having been in the community and crypto market for over a year, I have noticed a few issues. (Long Statistics.)
First, many people ignore chartists. I’ve seen this too many times and I’ve seen a lot of people fighting over it too. (I don’t want to see that.)
What you see in the charts contains human emotions. And it is reflected the fastest, showing how the price of an asset moves. And it shows the main price range for that asset. The skills and information of the right chartist can be of great help to your trading.
I’m not saying 100% trust. Look at the history of the chart. This is by no means short. I think it’s worth studying.
Second, corporate value alone cannot explain 100% of the rise in asset prices. Ultimately, speculative forces are needed and a boom in the market is absolutely necessary.
So, when will the booming market come? That’s when the market has a lot of liquidity.
We live in the modern monetary system (paper currency). Your assets rise and you can earn money is closely related to this as well. We call this a macro.
If I divide the things that have a lot of influence on the asset price in order, I think that macro is the first, and finding good companies is the second.
And I think macros are forests and businesses are trees. Normally, the forest is not very important. Because macro cycles are long on average. So, I think that if you do a good research to find a good tree in a normal period, you will make a good investment.
However, there are moments when forests become important. In the process of becoming important, corrections to long macro cycles occur. For now, it is QT and interest rate hikes.
This means reducing the liquidity that has been released in the market. (Of course, this is not all about the market, and the market could rebound at any time.)
And this market was provided with huge liquidity due to the unlimited quantitative easing and disaster relief due to the corona virus. This is a special situation and not a normal situation.
Most people are so used to this, and even more importantly, they only think of trees and not forests.
When forests are more important, they are not taken into account, even though forests are the factors that can have a greater impact on the market first. I think this is very ironic.
It is not that you should know macros as deeply as experts at securities companies. If you are not an economy-related job, a moderate level is sufficient. It’s enough to be referenced in your trading plan.
The market will surely go down one day. I don’t know when, but it will definitely go down. Peter Lynch told us to learn the history of the market.
History sometimes tells us that the market is going to go down. No, it is not possible to predict the timing of the decline, but it does tell you to be careful. The market never rises forever.
The crypto market I see never respects those who say so. They are uninterested and call them pessimists.
Not everyone is like that, but the percentage is very high. (I’ve seen this a lot, and I’ve seen a lot of fights over it all the time, and in fact, in the process pros sometimes stopped talking or left the community.)
If the average unit price of an asset is low and wealthy people don’t need to take this into account. However, not everyone has the same average unit price of an asset.
For some, the average unit price of altcoins is high. This is psychologically very painful to survive in a bear market. This makes for a really tough day. I never consider it a good investment.
A bear market offers an opportunity to change your life. The bear market has always been an opportunity for anyone and the starting point for many wealthy people.
Those who have been keeping their cash on hand while slowly making plans to buy and keeping an eye on the market will see the opportunity.
Third, crypto markets are characterized by high volatility on average. When prices go up, they go up very big, producing ridiculous returns, and when prices go down, they often fall more significantly than other markets.
This means that you need to thoroughly manage your risk. But most people don’t do this.
Don’t just think about the situation when the market is going up. And don’t hate the people who say the market is going to go down.
Everyone’s opinion may be different and that person is not saying that the market is going to go down 100%, he is talking about the need to manage risk. It may be telling you something you don’t see. Looking back, that’s really appreciated.
Also, the market will never abandon you. You don’t have to be afraid that it won’t rise with you. Opportunities are always there and you just need to plan and execute them. Never be in a hurry.
Finally, people have strange hopes for an uptrend.
A positive mind is always good, but a positive mind not facing the situation at all is never good. It will give you a lot of pain and will eventually destroy your heart.
Is it really good to just analyze that the market is going to go up?
Well, I think it’s a good person to get the gist and help you prepare. Think about the fact that that person really cares about you.
Human nature is lazy and doesn’t want to break free from the thoughts, tasks, and fences that we’ve been doing all our lives. But if you want to get something, you have to do something.
If you have a dream you want to achieve, and if you have that dream, you have to work hard. Never give up on learning. If you stay away from learning, it will be a disaster in your life.
There are so many great people in the world. Always be humble and get along with everyone around you. In the end, the only thing left in life is people.
I hope you love your job and work, love your family, love your children and love yourself.
I hope that a crypto culture that respects each other will continue in the future, and I sincerely wish all of you reading this good luck.
— Chang
